Revenues from property taxes will increase by S$600 millions in 2024. This is more than double the S$380 million government projected.
To help ease the impact, the government has announced a one time rebate of 100 per cent on owner-occupied Housing and Development Board (HDB) flats and 15 percent rebates for private owners. Both rebates are capped at S$1,000. The impact of a property tax reduction may be minimal if your house is large and you have a high AV.
Singapore’s annual residential property tax revenue will increase by approximately S$600,000,000 this year. The majority of that growth is due to non-owner-occupied properties.
This is more than what we initially anticipated when Budget 2022 was discussed. The property tax will rise by S$380,000,000 annually when it is fully implemented.
The collection of property tax in FY2022, which ended March 2023 (S$5.1 billion), was up 9.1 percent compared with FY2021 ($4.7 billion).
Higher-than-expected revenue from property taxes led to an increase in annual values, which grew along with rents and both private and government housing. The latest data provided by the Urban Redevelopment Authority shows that rents in private residential properties will grow 8.7 percent year over year during the fourth quarter of 2019.
Pritam Pritam, the leader of the Opposition from the Workers’ Party and the Leader of the House of Representatives, asked for the figure in response. He was concerned about the tax revenue expected in 2024 due to the rise in property taxes rates.
Property taxes can be calculated by using annual values (AVs), which are based off the estimated rent of the property if it were to be rented. This depends also on the condition, age and locational characteristics of the property as well as general market trends.
Chee pointed out that the property tax for non-owner occupied residential properties as well as high value owner occupied residential properties, which was announced in Budget-2022, will also be increased. The second step and final increase in tax rates took place on Jan. 1. They ranged from 12 to 36%.
When asked to implement differential tax rates, the government will consider how it can help both seniors and other families who face a big increase in their home taxes.